Contribution Testing
Recalculate deferrals against the election, apply contribution and catch-up limits, and tie pre-tax and Roth amounts across the payroll report, W-2, pay stub, and trust statement.
Recalculates deferrals against the election, applies contribution and catch-up limits, and ties pre-tax and Roth amounts across the payroll report, W-2, pay stub, and trust statement.
Purpose
To verify the accuracy and completeness of employee deferrals and employer contributions by recalculating contributions against the participant's election, applying IRC contribution and catch-up limits, and tying pre-tax and Roth amounts across the payroll register, W-2, pay stub, and trust statement.
Procedures
- Agree the deferral amounts on the participant's signed 401(k) election form to the amounts withheld on the pay stub for the selected pay period.
- Recalculate the participant's contribution percentage from gross wages on the Annual Payroll Report and confirm it agrees to the elected percentage.
- Apply the IRC annual compensation limit and the age-50+, super, and SIMPLE catch-up limits to confirm contributions do not exceed allowable thresholds.
- Agree pre-tax and Roth contributions per the Annual Payroll Report to amounts on the W-2.
- Confirm the gross wages on the Annual Payroll Report agree to the gross wages on the pay stub for the selected pay date.
- Confirm contributions withheld per the payroll report were deposited per the trust statement and review remittance timing.
Engagement Variables
The plan-specific overviews are set by EBP Plan Analysis. The IRC threshold variables are set during EBP Setup. All are referenced automatically when this procedure runs.
| Engagement Variable | Source | What it provides this procedure |
|---|---|---|
| Compensation Overview | EBP Plan Analysis | The plan's definition of eligible compensation. Used to determine the compensation base for contribution percentage recalculations. |
| Contributions Overview | EBP Plan Analysis | The plan's contribution rules, including match formula and any plan-specific deferral provisions. |
| Annual Compensation Limit (IRC §401(a)(17)) | EBP Setup (IRC Threshold) | The annual compensation cap used to limit eligible compensation in the contribution recalculation. |
| Catch-Up Contribution, Age 50+ (IRC §414(v)(2)(B)(i)) | EBP Setup (IRC Threshold) | Catch-up allowance for participants age 50 or older. |
| Super Catch-Up Contribution, Ages 60–63 (IRC §414(v)(2)(E)) | EBP Setup (IRC Threshold) | Super catch-up allowance for participants ages 60 through 63. |
| SIMPLE Catch-Up Contribution, Age 50+ (IRC §414(v)(2)(B)(ii)) | EBP Setup (IRC Threshold) | Catch-up allowance applied to SIMPLE plans. |
Your selections
| Selection | What to enter | Why it matters |
|---|---|---|
| Employee Name | Full legal name as it appears on plan records. | Drives document matching across the payroll report, W-2, pay stub, election form, and trust statement. |
| Pay Frequency | Bi-Weekly, Semi-Monthly, or Monthly. | Determines how contributions scale on an annualized basis and drives the contribution recalculation. |
| Pay Date Selected | The specific pay date for the period being tested. | The pay date Punchcard matches to the trust statement remittance. Use the check or deposit date, not the period end date. |
Documents to provide
| Document | What to provide | Key data extracted |
|---|---|---|
| 401(k) Election Form | The participant's signed deferral election form. | Elected deferral percentages or dollar amounts, election effective date. Used to confirm withheld amounts match the election. |
| Annual Payroll Report | Full-year payroll register for the plan year. | Gross wages, plan-eligible compensation, pre-tax deferrals, Roth deferrals, and employer match. Drives the contribution recalculation and the cross-document tie-outs. |
| W-2 | The participant's annual wage and tax statement. | Box 12 codes D (pre-tax) and AA (Roth). Used to agree pre-tax and Roth contributions per the Annual Payroll Report to the W-2 totals. |
| Pay Stub or Time Card | The individual pay period statement for the selected pay date. | Gross wages and contributions withheld for the selected pay date. Used to agree gross wages on the payroll register to the pay stub, and to confirm elected amounts were withheld. |
| Trust Statement | The trustee or recordkeeper record of contribution deposits received. | Pre-tax, Roth, and employer contributions received and the remittance date. Used to confirm deposits and to support remittance timing review. |
Don't have these exact documents?
Use Co-Audit to change which documents this request asks for, and to adjust the procedures and calculations that read them, so the workflow matches what your client actually provides.
Testing attributes
| Test | What Punchcard confirms |
|---|---|
| Agree election to pay stub | Compares the deferral amount on the signed election form to the amount withheld on the pay stub for the selected pay date. |
| Recalculate contribution percentage | Recalculates the participant's effective contribution percentage from the Annual Payroll Report and compares it to the elected percentage. |
| Apply contribution and catch-up limits | Confirms the participant's contributions do not exceed the annual compensation limit or any applicable catch-up limit, using the IRC threshold variables. |
| Agree pre-tax contributions: Payroll Report to W-2 | Compares pre-tax deferrals per the Annual Payroll Report to W-2 Box 12 Code D. |
| Agree Roth contributions: Payroll Report to W-2 | Compares Roth deferrals per the Annual Payroll Report to W-2 Box 12 Code AA. |
| Agree gross wages: Payroll Register to pay stub | Compares the gross wages on the payroll register to the gross wages on the pay stub for the selected pay date. |
| Confirm contributions deposited to trust | Agrees contributions withheld per the payroll report to deposits received per the trust statement for the selected pay date. |
Update with Co-Audit
Real client data rarely matches a template exactly. When the documents you receive, the labels on them, or the way contributions reconcile during review differ from what this template assumes, use Co-Audit to retool the request. Describe what is different and it rewrites the document groups, AI Prompt Columns, and calculations to fit.
Situations where Co-Audit helps with Contribution Testing:
- The payroll system labels contributions differently and Punchcard returns zero for a type that should have a value. Tell Co-Audit the exact labels this client uses (for example, pre-tax as
401K PRE-TAX, Roth asROTH EE, match asSH MATCH), then have it update the extraction prompts once so the instruction applies to every participant. - The match formula has a true-up or a per-payroll plus annual reconciliation the standard recalculation does not handle. Have Co-Audit roll the recalculation up by participant and add a true-up reconciliation column.
- The client provides an annual payroll detail report covering every pay period instead of individual pay stubs. Have Co-Audit rebuild the workflow to read that single combined report and recalculate the contribution percentage from it.
- The election is a digital record in the recordkeeper portal rather than a signed PDF. Have Co-Audit adjust the document group and the election-to-pay-stub agreement to read the portal export.
Describe the difference in the Co-Audit panel
For example: "the client uses an annual payroll detail report and a per-payroll match with an annual true-up; update the recalculation to roll up by participant and add a true-up reconciliation column."
Let Co-Audit update the workflow
It revises the document groups, AI Prompt Columns, and calculations.
Review every change
Watch the columns for red text (a broken reference) and re-check any cell that involves math, where the AI tends to copy a number forward instead of recalculating.
For broader detail on tailoring requests and fixing broken column links, see Tailor a request with Co-Audit in the EBP hub.
Continue your journey
← Payrate Testing
Confirm gross pay before testing contributions.
Remittance Testing →
Agree contributions to the trust statement and test remittance timeliness.
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